Hong Kong is undergoing a transition period. Many companies began including parts of China into their business portfolio during the 1990's. Companies that alter themselves for the dynamic environment appear to be more successful than others. Organizational learning seems to be the way to help organizations move forward. Companies that maintain status quo will increase the threat of diminishing their effectiveness and perhaps their survival. This research uses an exploratory and descriptive approach to investigate the renewal processes in four firms in Hong Kong. An initial conceptual framework was developed. After the data collection and analysis phases, the framework was improved and expanded to reflect reality. The final framework highlights dynamic forces that lead to organizational learning that invoke organizational renewal processes and ultimately affects organizational performance. The dynamic forces affecting the organizational renewal process were changed from four categories (strategy, structure, culture, and inter-organizational relationship) to three clusters (strategy, structure, and culture) with another cluster (inter-organizational and intra-organizational relationship) as moderators to organizational renewal process that will have an impact on firm performance. Factors in the three clusters of dynamic forces are leadership ideology, congruence in strategy formulation and implementation (strategy); communication, cohesion of top management team, centralization versus decentralization (structure); historical influence, innovation capacity, and cultural diversity (culture). The factors in the moderating cluster to organizational renewal process are alliance relationship and trust. Since this research uses a grounded theory approach and is built up from the collected data, there are limited room for deductive reasoning. Most of the organizational renewal literature originated in the west. This research forms a minute part of the organizational renewal literature from the east/west (Hong Kong is western in practice heavily influenced by eastern culture) and requires further exploration in magnitude and scale.